Free Accounting Dissertations - Make-or-buy Analysis Should Not Only Cover Variable Costs But Also Parts Of
Make-or-buy analysis should not only cover variable costs but also parts of fixed costs that can be avoided. Make-or-buy decision will lead to whether certain parts or processes should be done in-house or should be outsourced to reduce costs. But many times make-or-buy decision is not based on numbers only. Companies make certain parts in-house also to keep strategic advantage.
